Question

If two countries have identical production possibility frontiers, then A. there is a set of prices at which both countries will gain from trade B. they have identical marginal products of labor C. they have different opportunity costs of production. D. there is no scope for trade

Answer 1

Answer:C

Step-by-step explanation:

If two countries each produce two goods and their opportunity costs differ.

There is also an opportunity for trade between the two countries that will leave both better off.International trade leads countries to specialize in goods and services in which they have a comparitive advantage.